Astarta Agro Holding plans to pay dividends for 2023 in the amount of EUR0.5 per share for a total of EUR12.5 million, which is in line with the previous year.
As stated in the company’s announcement on the Warsaw Stock Exchange, the relevant draft decision has been included in the agenda of the shareholders’ meeting to be held in Nicosia (Cyprus) on June 4 this year.
Other issues include: adoption of a new remuneration policy; confirmation of PriceWaterhouseCoopers as auditor for 2023; and instructing the board of directors to elect an auditor for 2024.
As reported, Astarta first paid EUR12.155 million in dividends in June 2021 based on the results of 2020 in the same amount as proposed now – EUR0.5 per share. In the military year of 2022, the company refused to pay them, and then paid them in 2023.
In 2023, Astarta, the largest sugar producer in Ukraine, reduced its net profit by 5.0% to EUR61.9 million, and its EBITDA decreased by 6.1% to EUR145.77 million, while revenue increased by 21.3% to EUR618.93 million.
Astarta CEO Viktor Ivanchik’s family currently owns about 40.66% of the company. Fairfax Financial Holdings is also a major shareholder with 29.91%, and another 2.62% of shares belong to the company itself and were previously bought back as part of a buyback.
Astarta’s shares are currently quoted at PLN26.6 per share (about EUR6.23 per share), while about a year ago, when the dividend decision was approved, the rate was PLN32.80 per share (about EUR7.28 per share).
In 2023, Astarta agricultural holding increased the number of cattle at its three dairy farms by 10% year-on-year to 26 thousand heads, of which 47% were dairy herds, the company said in its annual report on Wednesday evening.
According to the document, cattle milk yields increased by 9% compared to the same period last year and reached 25.8 kg/day. This, together with a 3% increase in the number of cows in the herd compared to last year, led to a 12% increase in milk production compared to the same period last year and amounted to 115 thousand tons.
In addition, in 2023, the agricultural holding increased sales of raw milk by 13% year-on-year to 111 thousand tons, of which 96% was of high quality (94% a year earlier).
Astarta sold all of its milk domestically. The agricultural holding supplies top quality raw milk to Ukraine’s leading large dairy processors, including Lustdorf, Yagotynsky Butter Plant and others.
The average selling price of raw milk increased by 10% year-on-year to UAH 14 thousand. In euros, the selling price decreased by 4% year-on-year to 352 EUR/t in 2023 amid inflation and exchange rate changes.
According to the report, Astarta operates 33 dairy farms in three regions of Ukraine and specializes in the production of raw milk for further sale to processing companies.
The agricultural holding has a calf breeding complex to meet its own needs, which was opened in 2012 and produces about 5,000 heads of highly productive calves annually.
As reported, in 2023, Astarta reduced its net profit by 5.0% to EUR 61.9 million, and its EBITDA decreased by 6.1% to EUR 145.77 million. Last year, the agricultural holding’s revenue increased by 21.3% to EUR 618.93 million, gross profit by 7.8% to EUR 223.59 million, while operating profit decreased by 12.2% to EUR 95.78 million.
In 2023, Astarta Agricultural Holding produced 39 thousand tons of sugar beet, up 20% year-on-year, thanks to a record yield of 58 tons/ha compared to 56 tons/ha in 2022, the company said in its annual report on Wednesday evening.
According to the agricultural holding, the record high sugar beet harvest extended the processing period until the end of January 2024. In total, the sugar production campaign in 2023 lasted 130 days, compared to 111 days a year earlier.
“In the 2023-2024 marketing year, Astarta increased sugar production by 34% year-on-year to 377 thousand tons. At the same time, the volume of sugar beet processing in 2023 increased by 37% compared to the same period last year and reached 2.7 million tons. The market share remained unchanged at 21% in 2023, the document says.
The agroholding has engaged more than 100 independent sugar beet producers in eight regions of Ukraine to supply its sugar factories with raw materials. In 2023, they increased the supply of raw materials to 26% of the total volume of this crop processed by the company (18% a year earlier) – up to 707 thousand tons of the crop.
Astarta’s share in Ukraine’s total sugar exports amounted to 12%, or about 50 thousand tons in 2023. Italy and Romania became the key export destinations for the agricultural holding, accounting for 29% and 25% of the company’s exports, respectively. Hungary, Spain and Bulgaria were also among the top five buyers of Astarta’s sugar.
99% of Astarta’s sugar was exported by land, mainly by road (67%) and rail.
Half of the sugar produced was supplied to processing companies, primarily in the food industry, including confectionery, bakery and beverage production.
Astarta also produces by-products such as pressed pulp, dry granulated pulp and molasses from its sugar beet processing and sells them domestically as ingredients for animal feed production for use in its own livestock farming or for biogas production.
The volumes of by-products produced depend on the amount of sugar beet processed, so in 2023 their production volumes increased significantly, the agricultural holding explained. The production of molasses increased by 1.5 times to 98 thousand tons, and pressed pulp – to 1.7 million tons against 1.5 million tons in 2022. Production of granulated beet pulp amounted to 28 thousand tons.
In 2023, Astarta’s bioenergy complex used 145 thousand tons, or 9% of the produced pressed pulp, to produce biogas for its facilities. In addition, 223 tons (approximately 1%) of the produced granulated sugar beet pulp was used as alternative energy at one of the agricultural holding’s sugar plants.
Sugar sales volumes increased by 26% year-on-year to 284 thousand tons in 2023, while the average selling price increased by 3% to EUR 665/ton. Realized prices increased by 18% year-on-year to 26 thousand UAH/ton (excluding VAT).
Astarta Agroholding cut its net profit by 5.0% to EUR61.9m in 2023, while its EBITDA fell by 6.1% to EUR145.77m, the company said in its annual report on Wednesday evening.
“EBITDA margin decreased by 7 percentage points (p. p.) year-on-year to 23%, reflecting lower crop prices, higher selling expenses and a change in the basis of supply in the sale of crops,” the document said.
According to it, Astarta’s revenue last year increased by 21.3% to EUR618.93m, gross profit by 7.8% to EUR223.59m, while operating profit decreased by 12.2% to EUR95.78m.
It is specified that the Agriculture segment contributed 39% of consolidated revenue or EUR240 million in 2023 (+33% y-o-y), while the Livestock segment contributed 7% of total revenue or EUR43 million in 2023 (+10% y-o-y).
Sales of the Sugar Production segment grew by 28% y-o-y to EUR199m and accounted for 32% of total revenue in the period under review, while the Soy Processing segment contributed 20% of Astarta’s revenue or EUR122m, unchanged y-o-y.
According to the report, export sales accounted for about 53% of consolidated revenue or EUR325m last year.
The lower gross profit growth is due to the lower effect of the revaluation of the fair value of biological assets in the cost of revenue (EUR60 mln in 2023 vs. EUR73 mln in 2022), reflecting cheaper commodities and changes in exchange rates.
It is indicated that in UAH terms, Astarta increased net profit by 11.9% to UAH2bn 452.81m in 2023 on revenue growth of 39.3% to UAH24bn 446.26m.
According to the report, cash flow from operating activities amounted to EUR91m vs. EUR39m in 2022 due to lower working capital outflows, while cash flow from investment activities increased 2.6 times to EUR40m, with the largest investments in soybean processing and sugar production.
Net financial debt (net of lease liabilities) declined by 10% last year to EUR39m, while net debt increased slightly by 3% to EUR156m due to higher lease liabilities of EUR118m vs. EUR109m in 2022.
As reported, Astarta reported EUR65.16m net profit in 2022, down 46.8% from 2021. The holding’s EBITDA decreased by 23.2% to EUR154.77m in the year before last, while revenue increased by 3.8% to EUR510.07m.
In 9M 2023, net profit decreased by 9.8% to EUR55.97 mln, while revenue grew by 14.8% to EUR392.00 mln. EBITDA decreased by 10.8% to EUR116.63 mln.
In UAH terms, Astarta increased its net profit by 6.9% to UAH 2 bln 219.11 mln in the first 9 months of last year, while revenue grew by 37.7% to UAH 15 bln 513.56 mln.
Astarta Agro-Industrial Holding, the largest sugar producer in Ukraine, exported more than 1 million tons of products to global markets in 2023, the company’s press service reported on Facebook.
According to the report, the main consumers of corn were China, Spain, Portugal, the Netherlands, and wheat – Spain, Indonesia, Portugal, and Sri Lanka.
Astarta supplied sugar, soybean oil and meal mainly to European markets, and organic products to Germany, France, Switzerland and the Czech Republic.
In the first nine months of 2023, the agro-industrial holding decreased its net profit by 9.8% to EUR 55.97 million, while revenue increased by 14.8% to EUR 392.00 million.
“Astarta is a vertically integrated agro-industrial holding company operating in eight regions of Ukraine. It comprises six sugar factories, agricultural enterprises with a land bank of 220,000 hectares and dairy farms with 22,000 cattle, an oil extraction plant in Globyno (Poltava region), seven elevators and a biogas complex. For this marketing year’s harvest, the company sowed 201 thousand hectares, which is 40% more than last year.
Astarta Agroholding, Ukraine’s largest sugar producer, supplied more than 1 million tons of products to global markets in 2023 and received EUR325 million in export revenue, up 17% compared to 2022, the agroholding’s press service reported on Facebook.
“The year 2023 was characterized by a number of next logistical hurdles: the termination of the grain agreement; significant limitation of export opportunities across land borders with the EU; regular Russian air attacks on Ukraine’s energy, railway and port infrastructure. On the other hand, these challenges mobilized our team to look for new opportunities. Diversifying logistics flows, we used combined types of transportation – the lion’s share of our products was exported through the sea corridor from the ports of Greater Odessa, guarded by the Ukrainian Armed Forces. We also delivered shiploads overland to Polish ports and through the Danube ports,” the press service quoted Astarta Commercial Director Vyacheslav Chuk as saying.
According to the information of the agricultural holding, the main consumers of corn from Astarta are China, Spain, Portugal, Netherlands, wheat – Spain, Indonesia, Portugal, Sri Lanka. Astarta’s sugar, soybean oil and meal were supplied mainly to European markets. Astarta’s organic products were exported to Germany, France, Switzerland and the Czech Republic.
In general, the agricultural holding exported agricultural products to 44 countries.
Astarta said that it intends to continue working on diversification and expansion of sales markets, optimizing export logistics and increasing export volumes.
“Astarta is a vertically integrated agro-industrial holding operating in eight regions of Ukraine. It includes six sugar factories, agricultural farms with a land bank of 220 thousand hectares and dairy farms with 22 thousand cattle, an oil extraction plant in Globino (Poltava region), seven elevators and a biogas complex.
The agroholding earned EUR1.24 mln of net profit in the third quarter of 2023, which is 27.7 times less than in the same period of 2022. Astarta’s revenue decreased by 14.4% to EUR104.75m, gross profit decreased by 2.7 times to EUR26.96m, operating profit decreased by 7.6 times to EUR6.79m and EBITDA decreased by 42.7% to EUR97.25m.
Thanks to a stronger performance in the first half of this year compared to the first half of last year, for the first nine months of 2023 as a whole, net profit decreased by 9.8% to EUR55.97m on revenue growth of 14.8% to EUR392.00m. The company’s gross profit increased by 3.0% to EUR151.91m, while operating profit decreased by 15.9% to EUR79.91m and EBITDA decreased by 10.8% to EUR116.63m.
